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During the last twenty years the gas and electricity industries have come to play an increasingly important role in the British economy and by 1963 these two secondary energy industries were meeting about one-third of the country's total energy demands. During this same period both industries have been subject to changing location forces and it is to an examination of these that this paper is devoted. Many factors are, of course, important in influencing the location of gas works and power stations. One thinks immediately of the size of their markets, the level of interest rates on capital, the load factors of the plants and the like. But above all it is primarily a matter of relative transport costs which influences the orientation and hence the location of secondary energy production. Transport, therefore, along with the changing primary fuel base of the two industries, has a key role to play in this discussion. We shall explore its significance in the gas industry first of all. [ABSTRACT FROM AUTHOR]